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Peterson, 51, and Traylor, 33, argued and then violently fought as Peterson managed to push into the home.
But once inside, Traylor gained the upper hand.
Peterson was carrying a paintball gun that had the appearance of a firearm, the Sheriff's Office said.
Traylor retrieved his handgun and fired a single shot at Peterson, killing him.
The Sheriff's Office said there are no charges pending against Traylor.